Not all conveyancers are accredited to deal with commercial and business transactions.

When selling business it is essential you obtain the expertise of your conveyancer and accountant. For businesses selling at a total price of $450,000 or less, you will be legally obliged to provide interested buyers with a Contract of Sale in a prescribed form and Section 52 Statement. Some of the details a Vendor's Statement includes are:

 

• the name and address of the business and of the vendor/s

• details of the lease

• details about the business, including trading hours, business documents such as licences, permits and registrations details affecting the premises and the business

• details of any encumbrances such as mortgages, easements (mortgages, easements, leases and restrictive covenants)

• statements by the vendor relating to the trading record of the business

• a statement by a practising accountant to the effect the accounting and financial information is in accordance with the vendor's books and is true and fair to the best of his/her knowledge.

 

An interested buyer will usually ask you for details such as balance sheets, profit/loss statements, ATO Tax Assessments and Business Activity Statements which your accountant will be able to assist you with. Upon accepting an offer to buy your business, your conveyancer will prepare a Business Contract, incorporating the Vendor's Statement on your behalf.

 

Very similar when buying an existing business you are purchasing a proven operation with cash flow and profits. You will want to request the above information for yourself, accountant and conveyancer's perusal. In comparison to setting up from scratch, when you buy an existing business, your clientele, advertising and reputation are already accomplished and staff should know the daily operations like a well-oiled machine. For any individual becoming your own boss and buying a business is a big decision, and one you should make with the consideration of your conveyancer and accountant.